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New Plug-in Car Grant scheme now live

Plug-in Car Grant (PiCG) levels have now changed, with the new scheme refocusing on pure electric models and (in principle) the lowest emitting plug-in hybrids.

As of 00:01 on Sunday 21 October, the new grant levels apply to each Category of ultra low emission vehicles:
* Category 1 – CO₂ less than 50 g/km and a zero emission range of at least 70 miles
* Category 2 – CO₂ less than 50 /km and a zero emission range between 10 and 69 miles
* Category 3 – CO₂ 50 to 75 g/km and a zero emission range of at least 20 miles

Following the change in rates, the grant rates are now as follows:
* Category 1 – 35% of the purchase price up to £3,500 (reduced from £4,500)
* Category 2 – no longer eligible for the grant (was £2,500)
* Category 3 – no longer eligible for the grant (was £2,500)

The list of eligible vehicles, and the categories into which they fall, has been updated to reflect the new grant rates. For the latest list of PiCG eligible vehicles, visit the Official list of PiCG eligible vehicles. The following sections address common FAQs.

Have the grant rates now changed?

Yes. The new grant rates apply for orders placed from 00:01 on 21 October 2018.

If I ordered a vehicle before the grant rates changed (00:01 on Sunday 21 October), but it is not delivered and registered until after the grant rates change, will I still get a £4,500 / £2,500 grant?

Yes. As long as you ordered the vehicle before the grant rates changed and the dealer has correctly submitted the claim for the vehicle to OLEV. However, the car must be delivered within 9 months of when the claim was submitted.

If I placed an order before the change in grant rate, is there a time limit for when the car must be delivered?

Yes. Your car must be delivered within 9 months of when your dealer submitted the grant claim to OLEV to be eligible for the plug-in car grant. If it is not delivered within 9 months, the grant claim will be cancelled. If you have any questions, please contact your dealer.

I ordered a vehicle more than 9 months ago and it still hasn’t been delivered / won’t be delivered until after the grant rate change. Will it still qualify for a £4,500 / £2,500 grant?

If a vehicle is not delivered within 9 months of when your dealer submitted the grant claim to OLEV, the grant claim will be cancelled. Please speak to your dealer if you think this applies to your order.

It is not yet 9 November (the original start date of the new scheme), but my dealer has informed me that the car I wish to purchase is no longer eligible for the full £4,500/£2,500 grant. Is this correct?

Yes, the limits we placed on numbers of new orders that could be made during the transition period were met on 19 October. The new grant rates apply for orders made from 00:01 on 21 October.

Are the same cars eligible for the grant now the grant has changed?

No. Now the grant has changed, Category 2 and 3 vehicles are no longer eligible for any grant subsidy. However, although they are no longer eligible for the grant, plug-in hybrid vehicles remain a good option for some buyers. They are still ultra low emission vehicles and qualify for other government incentives.

Are the same cars still be eligible for the Category 1 grant (now £3,500) from 21 October?

The eligibility criteria for category 1 vehicles are unchanged, but the value of the grant has changed to £3,500.

I’m looking at buying a particular vehicle but can’t see it listed as an eligible vehicle, why not?

Eligible vehicles must meet the criteria for the plug-in car grant, including for CO2 emissions and zero emission range. The most common reason for exclusion of a plug-in car from the list is that it does not meet the CO2 requirement of less than 75 gCO2/km. Manufacturers must apply to be eligible for the scheme and provide evidence that their vehicle meets the strict criteria.

Are any plug-in hybrids now eligible for the PiCG?

In principle yes, as long as the vehicle's CO₂ emissions are less than 50 g/km and has a zero emission range of at least 70 miles. In practice, there are no PHEV models currently available in the UK that meet these criteria. (Note that the BMW i3 REX is no longer available to buy as a new car.) However, this may change in the future as more models become available.

Can I still get an electric vehicle homecharge scheme (EVHS) grant for a car that is no longer eligible for the plug-in car grant?

Yes. All ultra low emission vehicles remain eligible for the electric vehicle homecharge scheme grant, even if they are no longer eligible to receive the plug-in car grant.

Are vehicles that are no longer eligible for the plug-in car grant still eligible for other forms of local and government support, for example exemptions from congestion charges?

Eligibility for local government measures is determined by the local authority. You should check with them to see which vehicles are eligible for particular forms of local support.

I want to buy a plug-in van/taxi/motorcycle that is currently eligible for a grant. Are these vehicles still eligible?

Yes. The change in rates applies only to the plug-in car grant.

Please note that, due to the unannounced timing of the change to the PiCG, Next Green Car will be updating its database over the next few days during which time published OTR and PiCG grant levels not reflect actual rates. We aim to ensure that all car prices and grant levels will be correct by the 25th October at the latest.

Ben Lane

Author:Ben Lane
Date Updated:23rd Oct 2018

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